71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1652
 
                         House Bill 2803
 
Sponsored by COMMITTEE ON RULES, REDISTRICTING, AND PUBLIC
  AFFAIRS
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Limits rent increases for manufactured dwelling park. Creates
Manufactured Dwelling Park Rent Review Commission to review
challenged rent increases.
  Permits civil penalty of not more than $100 for each affected
rental space to maximum of $2,500, or of $200 for each affected
rental space to maximum of $5,000, depending on magnitude of
violation. Permits additional civil penalty of not more than
$5,000 upon finding of bad faith.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to manufactured dwelling park rents; and prescribing an
  effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + As used in sections 1 to 4 of this 2001 Act:
  (1) 'Fiscal year' means the fiscal year for a manufactured
dwelling park.
  (2) 'Increase in the cost of living' means the increase during
a fiscal year in the Portland Consumer Price Index for All Urban
Consumers for All Items as prepared by the Bureau of Labor
Statistics of the United States Department of Labor. The Portland
consumer price index most recently announced by the bureau prior
to a particular date is considered the index for that date.
  (3) 'Investment amount' means the assessed value of a
manufactured dwelling park at the beginning of the preceding
fiscal year for the park.
  (4) 'Landlord' means the owner or operator of a manufactured
dwelling park.
  (5) 'Legitimate expenses' means all reasonable and necessary
costs actually incurred by the manufactured dwelling park during
the preceding fiscal year to maintain or improve facilities and
services for existing manufactured dwelling park spaces and
tenants or for increasing the number of manufactured dwelling
spaces in the park. 'Legitimate expenses' does not include
management expenses in excess of 10 percent of the amount
actually received from park rents. 'Legitimate expenses' does not
include costs or attorney fees incurred in defending a rent
increase found by the Manufactured Dwelling Park Rent Review
Commission to be excessive.
 
  (6) 'Manufactured dwelling park' has the meaning given that
term in ORS 446.003.
  (7) 'Net profit' means the total income generated by a
manufactured dwelling park from all sources after deducting
legitimate expenses for the park. 'Net profit' includes the
amount of loan principal paid by a landlord if the landlord uses
the manufactured dwelling park as collateral for the loan.
  (8) 'Net return' means a percentage determined by dividing the
net profit received from a manufactured dwelling park during a
fiscal year by the investment amount. + }
  SECTION 2.  { + (1) A landlord may not increase rent for space
in a manufactured dwelling park if charging the post-increase
rent amount throughout the preceding fiscal year to all spaces
affected by the rent increase would have produced a net return
for the preceding fiscal year exceeding the total of five percent
plus the percentage increase in the cost of living. In
calculating the effect of the hypothetical rent increase on net
return for the preceding fiscal year, if the landlord has raised
rents since the end of the preceding fiscal year for other spaces
in the park, the landlord shall apply those higher rent amounts
to determine the income from those spaces.
  (2) A landlord giving notice of a manufactured dwelling space
rent increase must, at the time of giving the notice, provide
information showing the increased rent amount in comparison with
the maximum rent increase that would be allowed by subsection (1)
of this section.
  (3) Notwithstanding subsection (1) of this section, upon
petition by a landlord, the Manufactured Dwelling Park Rent
Review Commission may grant prior approval to a landlord for a
rent increase that exceeds the maximum rent increase allowed by
subsection (1) of this section. The landlord must give tenants or
tenants' associations notice of the petition as required by
commission rule. Prior to granting approval, the commission shall
allow the landlord and affected tenants or tenants' associations
to comment on the petition. The commission may grant approval of
a petition only:
  (a) If one or more previous rent increases for the manufactured
dwelling space were smaller than the rent increases the landlord
could lawfully have charged under subsection (1) of this section;
or
  (b) If the rent increase is necessary due to extraordinary
circumstances beyond the control of the landlord.
  (4) A tenant or tenants' association may file a complaint
concerning a rent increase for space in a manufactured dwelling
park with the commission as provided under section 3 of this 2001
Act. A tenant or tenants' association may not file a complaint
concerning a rent increase that received prior approval of the
commission under subsection (3) of this section. + }
  SECTION 3.  { + (1) There is created the Manufactured Dwelling
Park Rent Review Commission. The commission consists of a
chairperson appointed by the Director of the Housing and
Community Services Department and six members appointed by the
Governor. The term of office for an appointed member is for three
years, but appointed members serve at the pleasure of the
appointing authority. Appointments to the commission are subject
to confirmation by the Senate as provided in ORS 171.562 and
171.565.  Members of the commission are not entitled to
compensation, but may be reimbursed from funds available to the
director for actual and necessary travel expenses incurred in the
performance of their official duties.
  (2) The Governor shall appoint to the commission:
  (a) One member representing the banking industry;
  (b) One member representing manufactured dwelling manufacturers
or dealers;
  (c) Two members representing manufactured dwelling park owners;
and
  (d) Two members representing manufactured dwelling park
tenants.
  (3) Upon receipt of a complaint from a tenant or tenants'
association concerning a manufactured dwelling space rent
increase, the commission may investigate to determine whether the
rent increase exceeds the maximum rent increase allowed by
section 2 (1) of this 2001 Act. The commission may subpoena
witnesses, books, papers, accounts, records and memoranda and may
administer oaths. Business information received by the commission
from a landlord is confidential and may not be revealed by the
commission. The commission may make findings based on commission
analysis of confidential information.
  (4) If the commission finds that the amount of the rent
increase, when used in the calculation described in section 2 (1)
of this 2001 Act, causes the hypothetical net return under
section 2 (1) of this 2001 Act to exceed the total of five
percent plus the percentage increase in the cost of living, but
not exceed the total of 10 percent plus the percentage increase
in the cost of living, the commission shall order the landlord to
refrain from further increasing rent for the space until
authorized in writing by the commission. The commission may
authorize the landlord to increase rent for a space only when the
commission finds that the benefit to the landlord of the improper
rent increase has been nullified. The commission may not
authorize a rent increase under this subsection that violates the
limits established by section 2 of this 2001 Act.
  (5) If the commission finds that the amount of the rent
increase, when used in the calculation described in section 2 (1)
of this 2001 Act, causes the hypothetical net return under
section 2 (1) of this 2001 Act to exceed the total of 10 percent
plus the percentage increase in the cost of living, the
commission shall order the landlord to restore the rent to the
level in effect prior to the rent increase. If the landlord has
received increased rent prior to the commission order, the
commission may order the landlord to return to the tenants any
excessive amount received under the rent increase.
  (6) The commission may award reasonable costs and attorney fees
to a prevailing party in any proceeding under this section.
  (7) The commission may make all rules necessary and proper for
carrying out the duties of the commission. + }
  SECTION 4.  { + (1) In addition to any action taken by the
Manufactured Dwelling Park Rent Review Commission under section 3
of this 2001 Act:
  (a) If a landlord imposes a rent increase for space in a
manufactured dwelling park that causes the hypothetical net
return calculated under section 2 (1) of this 2001 Act to exceed
the total of five percent plus the percentage increase in the
cost of living, but not to exceed the total of 10 percent plus
the percentage increase in the cost of living, the commission may
assess the landlord a civil penalty of up to $100 for each
affected space in the park but not more than $2,500 total.
  (b) If a landlord imposes a rent increase for space in a
manufactured dwelling park that causes the hypothetical net
return calculated under section 2 (1) of this 2001 Act to exceed
the total of 10 percent plus the percentage increase in the cost
of living, the commission may assess the landlord a civil penalty
of up to $200 for each affected space in the park but not more
than $5,000 total.
  (2) Notwithstanding the maximum penalties established under
subsection (1) of this section, if the commission finds that a
rent increase in excess of the limit established under section 2
(1) of this 2001 Act was made in bad faith, the commission may
assess the landlord an additional civil penalty, not to exceed
$5,000. + }
  SECTION 5.  { + Sections 1 to 4 of this 2001 Act do not apply
to manufactured dwelling space rent charged during the initial
term of a contract entered into prior to the effective date of
this 2001 Act if the contract for that space expressly specifies
the dates and amounts of rent increases under the contract. + }
  SECTION 6.  { + Notwithstanding the term of office specified by
section 3 of this 2001 Act, of the members first appointed to the
Manufactured Dwelling Park Rent Review Commission:
  (1) Three shall serve for terms of one year.
  (2) Two shall serve for terms of two years.
  (3) Two shall serve for terms of three years. + }
  SECTION 7.  { + (1) Except as provided in subsection (2) of
this section, sections 1 to 4 of this 2001 Act become operative
January 1, 2002.
  (2) The chairperson and members of the Manufactured Dwelling
Park Rent Review Commission may be appointed before the operative
date of sections 1 to 4 of this 2001 Act and may take any action
before the operative date of sections 1 to 4 of this 2001 Act
that is necessary to enable the commission to exercise, on or
after the operative date of sections 1 to 4 of this 2001 Act, all
the duties, functions and powers conferred on the commission by
sections 1 to 4 of this 2001 Act. + }
  SECTION 8.  { + This 2001 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-first
Legislative Assembly adjourns sine die. + }
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